Drop-Down Coverage
Definition. Drop-Down Coverage is an Umbrella feature where the umbrella drops down to provide primary coverage for claims the underlying policy excludes.
Also known as: Drop-Down, True Umbrella Feature
Distinguishes True Umbrella from Pure Excess. Most-prized for businesses with niche exposures. Common drop-down: Personal injury (libel/slander), Liquor Liability, Hired Auto. Specialty markets (Chubb, AIG, Travelers) often offer broader drop-down than standard.
Example
GL excludes Personal Injury (libel). True Umbrella with drop-down covers a defamation lawsuit as primary insurance.
Sources cited
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📘 Educational content only.
Reviewed by California-licensed Property & Casualty insurance agent
Jason Wootton (CA License #0I94454). Not insurance advice, an individual recommendation, or a solicitation in any state. Insurance regulations vary by state. For specific coverage decisions, consult a licensed insurance agent in your state.
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